The European Parliament has published a study that evaluates options available under international law to enable the confiscation of Russian state assets to support the reconstruction of Ukraine. The report focuses on the $300 billion in frozen Russian Central Bank assets held in various jurisdictions. It provides risk assessments of the following six repayment options currently under review:
- The enforcement of European Court of Human Rights judgments;
- An international treaty to setup a compensation commission;
- Taxing windfall contributions;
- Placing Russian state assets into an escrow account as collateral;
- Identifying Russia as a state sponsor of terrorism; and
- The establishment of an investment “common fund”.
In the report, the European Parliament also analyzes four avenues for overcoming legal hurdles to Russia’s immunity from enforcement. It also addresses proposals based on third-party countermeasures and collective self-defense. Based upon the European Parliament’s analysis, the repayment options most likely to comply with international law are confiscation based on third-party countermeasures with a conditional element, and confiscation based on enforcement of international judgments against Russia.
European Parliament Think Tank Report | European Parliament Study